But keep in mind that a credit limit increase request could result in a hard pull on your credit report. Tip: One way to lower your credit utilization is to ask your card issuers for higher credit limits. For most of us, something in the range of 20 percent to 25 percent will keep your score in good shape. People with the best scores are in the single-digit percentage points in this category. As soon as you pay your statement, your credit utilization drops. Here’s how it works: If you have a $5,000 credit limit and charge $1,000, your credit utilization is 20 percent. This accounts for up to 30 percent of your FICO score and is extremely influential on your VantageScore. Next is your credit utilization, or how much of your available credit you are using. If a bill comes due and you find that you can’t pay it, it’s always best to call the company and work out a mutually beneficial payment plan to avoid outright missing a payment. To earn the best score, your goal should be to never miss a payment date on any of your accounts, whether that be a loan, mortgage or credit card. Payment history makes up 35 percent of your total FICO score and is considered “moderately influential” on your VantageScore. These are the factors that make up your credit score: Payment history
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